Tag Archives: Oil industry lobby

Mr. Governor, kill the oil ‘watchdog’ – Tom Hayden on California’s pathetic fracking regulator

Repost from The San Francisco Chronicle

Watchdog or lapdog of Big Oil?

By Tom Hayden, April 24, 2015 4:32pm
LOST HILLS, CA - MARCH 24:  The sun rises over an oil field over the Monterey Shale formation where gas and oil extraction using hydraulic fracturing, or fracking, is on the verge of a boom on March 24, 2014 near Lost Hills, California. Critics of fracking in California cite concerns over water usage and possible chemical pollution of ground water sources as California farmers are forced to leave unprecedented expanses of fields fallow in one of the worst droughts in California history. Concerns also include the possibility of earthquakes triggered by the fracking process which injects water, sand and various chemicals under high pressure into the ground to break the rock to release oil and gas for extraction though a well. The 800-mile-long San Andreas Fault runs north and south on the western side of the Monterey Formation in the Central Valley and is thought to be the most dangerous fault in the nation. Proponents of the fracking boom saying that the expansion of petroleum extraction is good for the economy and security by developing more domestic energy sources and increasing gas and oil exports.   (Photo by David McNew/Getty Images) Photo: David McNew, Getty Images
LOST HILLS, CA – MARCH 24: The sun rises over an oil field over the Monterey Shale formation where gas and oil extraction using hydraulic fracturing, or fracking, is on the verge of a boom on March 24, 2014 near Lost Hills, California. Critics of fracking in California cite concerns over water usage and possible chemical pollution of ground water sources as California farmers are forced to leave unprecedented expanses of fields fallow in one of the worst droughts in California history. Concerns also include the possibility of earthquakes triggered by the fracking process which injects water, sand and various chemicals under high pressure into the ground to break the rock to release oil and gas for extraction though a well. The 800-mile-long San Andreas Fault runs north and south on the western side of the Monterey Formation in the Central Valley and is thought to be the most dangerous fault in the nation. Proponents of the fracking boom saying that the expansion of petroleum extraction is good for the economy and security by developing more domestic energy sources and increasing gas and oil exports. (Photo by David McNew/Getty Images)

Jerry Brown perhaps should put his DOGGR to sleep. Not his family dog, Sutter, but DOGGR — the Division of Oil, Gas and Geothermal Resources — the 100-year-old agency that’s been handing out permits for drilling in the Central Valley without records, oversight or enforcement of 21st century environmental laws.

The agency was created prior to Upton Sinclair’s 1927 novel, “Oil!,” on which Daniel Day-Lewis’ 2007 film, “There Will Be Blood,” was based. Oil was to California what cotton was to Mississippi, a booming industry based on subsistence labor, migration, racism, vigilantism, and government officials looking the other way.

Oil wells in the Midway-Sunset oil field in Fellows (Kern County). Monterey Shale, largely untouched territory near Midway-Sunset, could represent the future of California's oil industry and a potential arena for conflict between drillers and the state’s powerful environmental interests. Photo: Jim Wilson, New York Times
Oil wells in the Midway-Sunset oil field in Fellows (Kern County). Monterey Shale, largely untouched territory near Midway-Sunset, could represent the future of California’s oil industry and a potential arena for conflict between drillers and the state’s powerful environmental interests. Photo: Jim Wilson, New York Times

Times change but slowly. Current Kern County Sheriff Donny Youngblood, who says Kern ought to be a county in Arizona, opposes President Obama’s immigrant-rights policy. There are an estimated 66,000 undocumented immigrants in Kern County, whose population is majority Latino. More than 22 percent of its people live below the poverty line, 69 percent of them within one mile of an oil well.

The barren place is a bit like Mississippi in the ’60s, powerful enough to defy progressive norms or laws on the national level. The federal government in 1982 transferred its power to California to monitor and regulate the 42,000 injection wells that dump toxic waste fluids into groundwater. That monitoring didn’t happen, a lapse that the feds say is shocking. The human carcinogen benzene has been detected in fracking wastewater at levels 700 times over federal safety standards. Health impact studies are inadequate, but Kern community hospital managers say the county has one of the highest cancer rates in the country, which is expected to double in 10 years.

How did it happen that the Obama Environmental Protection Agency is pushing the Jerry Brown EPA to comply with modern environmental law? The same Gov. Jerry Brown signed that 1982 agreement, giving Big Oil an opportunity to oversee itself. Those were the days when President Ronald Reagan’s Anne Gorsuch ran the federal EPA, perhaps convincing California that it could do a better job.

As a result of the 1982 transfer, the feds say California has failed at oversight and record-keeping. With the feds watching, the state has two years to implement a meaningful monitoring plan.

Brown has tried to fix the problem, which undercuts his claim that drilling and controversial fracking can be addressed by beefed up regulations instead of a moratorium on fracking that most environmentalists want. He has added more professional staff to DOGGR and installed a new director, Steve Bohlen, who promises to clean up the place. Since last summer, the agency has shut down 23 injection wells out of 2,500.

The preference of one experienced state official is to peel back DOGGR, move it to Cal EPA and turning it into a real regulatory agency instead of a lapdog for the oil industry. But Brown officials prefer the uphill task of reforming DOGGR from within, and have signaled they will veto any bill that brings the agency under state EPA jurisdiction. The Legislature is going along with his incremental approach, so far.

The task will be daunting. The DOGGR mandate has been to drill, baby, drill, says state Sen. Hannah-Beth Jackson, D-Santa Barbara. DOGGR’s legal mandate calls for “increasing the ultimate recovery of underground hydrocarbons,” not determining whether drilling or fracking are sustainable and safe for aquifers or human health. Her SB545 is still a work in progress, however. It stops the archaic custom of drilling permits being obtained and accepted without any written approvals or findings, which upsets the feds and shuts out the public. Until recently, an oil company simply gave notice of its intent to drill and was entitled to proceed unless the agency said no in writing within 10 days. Under Jackson’s bill, an application to drill will require written approval, and the paperwork will be posted on the DOGGR website. In addition, the bill will limit the Kern custom of keeping records about chemicals and water impacts confidential, even when a well has gone into production.

However, the bill’s language makes oversight optional by saying that DOGGR “may” require an operator to implement a monitoring plan. Decision-making power is devolved to the division district deputy in Kern, which is like expecting a Mississippi sheriff to carry out federal law in 1964 — or the present Kern sheriff to enforce immigration law today. Nor does the bill give the state EPA or health experts any shared authority in the permitting process.

Well derricks crowd the Kern River oil field in Bakersfield in 1912. Photo: Chevron, SFC
Well derricks crowd the Kern River oil field in Bakersfield in 1912. Photo: Chevron, SFC

At the heart of the scandal is the historic power of Big Oil against the emergence of California’s clean-energy economy with its priorities of renewable resources and efficiency. The Democratic majority in Sacramento is hobbled by a pro-drilling contingent, led by Republicans with a number of Central Valley Democrats. The oil lobby spent $9 million in 2014 in a failed attempt to exempt themselves from the state’s cap-and-trade law. The effort was led by Assemblyman Henry Perea, D-Fresno, along with 16 Democratic legislators. In a more striking example, state Sen. Michael Rubio, D-Bakersfield, left his seat in 2013 to begin lobbying for Chevron, one of the major firms along with Occidental Petroleum operating in Kern’s oil fields. The oil lobby is spending large sums to cultivate friendly Democratic candidates and underwrite advertising campaigns warning of a “hidden gas tax” if their privileges are threatened.

Many Sacramento insiders believe that Brown has made concessions to Big Oil in order to protect his considerable progress toward clean-energy goals while not confronting the industry the way he took on the nuclear lobby in the ’70s. That’s understandable, if it works. Now, however, his regulatory reputation needs rebuilding. What if his DOGGR won’t hunt? What if it’s beyond reform? What will the governor and Legislature do if facing open defiance from the powers that be in Kern on a range of issues from clean air and water to the protection of children’s health to environmental justice? With the drought on everyone’s mind, can he allow the state’s aquifers to be threatened by the carcinogenic wastewater of oil production?

The DOGGR scandal drills deeply into the foundations on which state politics are built.

Tom Hayden writes, speaks and consults on climate politics and serves on the editorial board of the Nation. His latest book is “Listen Yankee!: Why Cuba Matters.” (Seven Stories Press, 2015).

Rep. Jackie Speier (D-CA) Declares Pipeline and Oil-by-Rail Regulatory System “Fundamentally Broken”

Repost from DeSmogBlog
[Editor:  This excellent DeSmogBlog article is more about the power of the oil industry lobby than it is about Rep. Speier.  For video and transcript of Rep. Speier’s comments go to YouTube: “Congresswoman Speier calls PHMSA toothless kitten.” On her Facebook page, Speier recommends more about PHMSA’s pipeline regulatory failings at POLITICO Magazine.”  – RS]

Congresswoman Declares Pipeline and Oil-by-Rail Regulatory System “Fundamentally Broken”

By Justin Mikulka, April 23, 2015 – 04:58

The system is fundamentally broken.”

Those were the words of Rep. Jackie Speier (D-CA) during an April 14th hearing on oil-by-rail and pipeline safety.

For anyone expecting the soon to be released oil-by-rail regulations to make any meaningful improvements to safety, it would be wise to review the full comments made by Rep. Speier.

It has been more than four years since a gas pipeline exploded in Speier’s district in San Bruno, California resulting in eight deaths, huge fires and destruction of a neighborhood. In her testimony she recounted how the state regulators were clearly in league with industry prior to this accident. And in the time since she has come to find that federal regulators, the Pipeline and Hazardous Materials Safety Administration (PHMSA), “does not have the teeth—or the will—to enforce pipeline safety in this country.”

PHMSA is the agency also in charge of the new oil-by-rail regulations as it is a division of the Federal Railroad Administration (FRA). One thing is certain — the new regulations won’t address the volatility of Bakken oil. The White House has already decided that the regulations will not deal with this issue and instead they left it up to North Dakota to deal with it.

North Dakota passed regulations that went into effect April 1 that require the oil to be “conditioned” prior to shipment by rail to address the volatility. However, as has been documented on DeSmogBlog before, conditioning doesn’t remove the volatile and explosive natural gas liquids from the oil. That requires a process known as stabilization.

So with no rules in place to require the oil to be stabilized, future train accidents involving Bakken oil will very likely be similar to the seven that have occurred since July 2013. Huge fires, exploding tank cars and the now all too familiar Bakken mushroom cloud of flame.

There have been seven accidents and it has been the same in all of them. But the White House has decided that the regulations don’t need to address this issue.

Recently the Department of Energy (DOE) got involved in the discussion about Bakken crude with the release of a document called Literature Survey of Crude Oil Properties Relevant to Handling and Fire Safety in Transport.

It is interesting that the DOE is commissioning reports on this topic since the department has no regulatory oversight of oil-by-rail. The report received little attention upon its release, although it was immediately touted by the American Petroleum Institute (API) as proving that the characteristics of crude oil had nothing to do with the fires occurring in the Bakken train accidents.

The API press release stated, “The Department of Energy found no data showing correlation between crude oil properties and the likelihood or severity of a fire caused by a derailment.”

During the recent hearing, this new DOE report was cited twice by two separate members of Congress. They both used the report to question a statement recently made by Federal Railroad Administration acting administrator Sarah Feinberg regarding the need for the oil companies to reduce the vapor pressure and volatility of oil for rail transport. Reducing the vapor pressure and volatility would require stabilization.

Early in the hearing, Rep. Lou Barletta (D-PA) read a question that contained the exact same description of the report’s conclusion as the API press release.

You [Feinberg] have recently called on the energy industry to quote ‘do more to control the volatility of its cargo.’ You may have seen a recent report from the Department of Energy where the agency found no data showing correlation between crude oil properties and the likelihood or severity of a fire caused by a derailment.”

Rep. Barletta received $106,540 from big rail in the last election cycle.

Later in the hearing, Rep. Brian Babin (R-TX) read the exact same statement. It appeared even Feinberg was a bit surprised at being asked the exact same question by two different congressmen as she responded, “I’m happy to take that question again.”

Rep. Babin received $37,550 from the oil industry in the last election cycle with $7,500 coming from Exxon Mobil.

So, while the API wasn’t at this hearing, they had two members of Congress directly reading prepared questions that echoed their press release on the DOE report word for word.

Watch video of the two identical questions asked at the hearing:

The first important thing to note about the “no data” talking point is that it is true. The report did not find data on this because that isn’t what the report was designed to do. The report reviewed three field sampling studies on the characteristics of Bakken crude oil. None of these studies looked at “correlation between crude oil properties and the likelihood or severity of a fire caused by a derailment.”

It is easy to say you found “no data” when you know there is none in your source material to begin with.

Perhaps the most insidious part of this is that no one at the hearing called them on their blatant mischaracterization of the report and their ignorance of the science of Bakken oil and volatility.

In a recent article about the volatility of oil in Al Jazeera, an actual petroleum engineer clearly stated what is widely known in the oil and rail industries but is “debated” by the API and congress and regulators to avoid having to regulate the Bakken crude.

The notion that this requires significant research and development is a bunch of BS,” said Ramanan Krishnamoorti, a professor of petroleum engineering at the University of Houston. “The science behind this has been revealed over 80 years ago, and developing a simple spreadsheet to calculate risk based on composition and vapor pressure is trivial. This can be done today.”

A bunch of BS. The oil industry, DOE, FRA and PHMSA want us to believe that the properties of oil aren’t currently understood. And as outrageous as that assertion is, multiple hearings and reports have been conducted on the matter. And many more will occur before anything is done.

The DOE report outlines all of the further research the department will be doing on this issue over the next couple of years.

And as previously reported on DeSmogBlog, the exact same thing is happening with tar sands oil and dilbit. Hearings, studies, reports. With many of the studies and reports being directly funded by the American Petroleum Institute and its members. All dragging on years after major incidents like the Kalamazoo River dilbit spill.

In her testimony, Rep. Speier didn’t hold back on her feelings about the failures of the regulatory system.

PHMSA is not only a toothless tiger, but one that has overdosed on Quaaludes and is passed out on the job.

But the reality is that PHMSA is just a small piece of the much larger puzzle that includes the Department of Energy, the White House, the Federal Railroad Administration and first and foremost, the American Petroleum Institute and their supporters at all levels.

A couple of days after the hearing, FRA acting administrator Sarah Feinberg appeared on Rachel Maddow’s show to discuss this problem and said the following regarding stabilization of oil.

The science is still out. The verdict is still out on what the best way is to treat this product before placing it into transport.”

Watch FRA acting administrator Sarah Feinberg in this Maddow clip:

But the science isn’t still out. Even in the DOE report, it clearly states that the oil needs to be stabilized to reduce the vapor pressure and that conditioning the oil, as they currently require in North Dakota, does not accomplish this.

To add to the absurdity of this situation, Feinberg admitted to Maddow that the oil industry stabilizes the oil before it is transported in pipelines or on ships. Apparently the science is crystal clear in those cases.

So while Feinberg got beat up at the hearing by congressmen and their API talking points, there was Feinberg on Maddow’s show spouting other API talking points.

Rep. Speier is probably wrong. The system isn’t fundamentally broken. This would be true if the system was designed to keep the public safe, but it isn’t. The system is designed to keep corporate profits safe so the reality is that the system is working as designed. And the bomb trains continue to roll.

Why more pipelines won’t solve the problem of oil-train explosions

Repost from Grist

Why more pipelines won’t solve the problem of oil-train explosions

By Ben Adler on 6 Apr 2015
Shutterstock | Shutterstock
In the last few years, the grassroots environmental movement has energetically opposed constructing big new oil pipelines in North America. Their opposition is understandable, since, on a global level, fossil fuel infrastructure encourages fossil fuel consumption, contributing to climate change, and, on a local level, oil pipelines leak and explode. But conservatives have been delighted to argue that greens are endangering the public and being short-sighted. Oil that comes out of the ground has to get to market somehow, and currently a huge amount of it is being shipped on freight trains. The result? An epidemic of oil train derailments, causing spills and even deadly explosions.

Is it fair to blame activists for this? Should climate hawks throw in the towel and accept Keystone XL as the lesser evil?

No and no — and I’ll explain two key reasons why.

First: Much of the oil criss-crossing the U.S. on trains is coming from North Dakota and traveling out along east/west routes where there aren’t even any proposals for big new pipelines. You can’t blame activists for that. Keystone would connect the Alberta tar sands to refineries on the Gulf Coast, but wouldn’t do anything to help move North Dakota’s fracked bounty. Right now rail is the main option for that. “Keystone XL would enable tar-sands expansion projects, but is unlikely to reduce crude-by-rail,” says Anthony Swift, an attorney at the Natural Resources Defense Council. But don’t just take his word for it. Oil-loving, Keystone-supporting North Dakota Sen. Heidi Heitkamp (D) makes the same point: “I am not someone who has ever said that the Keystone pipeline will take crude off the rails. It won’t,” Heitkamp said in November. “Our markets are east and west and it would be extraordinarily difficult to build pipelines east and west.”

Second: Climate activists are supporting something that actually would go a long way toward solving the problem of dangerous oil trains: strict regulation of those trains.

In the long term, of course, climate hawks want to keep the oil in the soil, and they are pushing for structural changes — like an end to federal leases for oil drilling offshore and on federal land — that would reduce the amount of oil we produce in the U.S. But in the short term, they’re not just being unrealistic and saying “no” to all oil transport — they’re pushing to make that transport safer.

The Department of Transportation has the authority to impose rules on oil trains’ design and speed, which would reduce the risk of them leaking and exploding when they derail or crash. DOT made an initial proposal in July of last year and is expected to finalize it in May. Green groups have been disappointed by the proposal, though — both the weakness of the rules and the slowness of the timetable. If all goes according to plan, the rules would be implemented later this year, but their requirements would still take years to phase in.

Fortunately there’s now a stronger proposal that climate hawks can get behind: a new Senate bill that would impose stiffer requirements than those being proposed by the Obama administration. Sen. Maria Cantwell (D-Wash.) introduced the Crude-By-Rail Safety Act late last month, along with three Democratic cosponsors: Tammy Baldwin (Wis.), Patty Murray (Wash.), and Dianne Feinstein (Calif.). It got immediate backing from big green groups.

Here are four critical things that need to be done to make oil trains safer, three of which are included in Cantwell’s bill:

  1. Stop the transport of oil in an old model of rail car, called the DOT-111, that was designed back in the ‘60s. DOT-111s “have a number of manufacturing defects that make them much more likely to rupture in a derailment,” says Swift. So environmentalists want to get 111s off the rails immediately. That’s exactly what Cantwell’s Senate bill would do. DOT, in contrast, proposes to delay that transition. “DOT only slowly phases out 111s by 2017 and the rest of fleet by 2020, and we think the industry is pushing to move the phaseout to 2025,” says Devorah Ancel, an attorney at the Sierra Club. “It’s very concerning.”
  2. Require steel jackets around vulnerable rail cars that carry oil. DOT would require freight companies to transition to a newer, sturdier model of car called the CPC-1232, but even those cars aren’t sturdy enough — they have already been involved some fiery accidents, including one in West Virginia in February and one in Illinois in March. Cantwell’s bill would go further, requiring CPC-1232s to be jacketed, and then calling for “new tank car design standards that include 9/16th inch shells, thermal protection, pressure relief valves and electronically-controlled pneumatic brakes.”
  3. Clamp down on the amount of flammable gases permitted in the oil on train cars. Oil fracked in North Dakota’s Bakken shale carries more volatile gases with it than your average crude, making explosions more common. DOT’s proposed rules do nothing to curb that. Cantwell et al would limit the volatility of the oil being transported and increase fines for violations.
  4. Reduce train speeds. Currently, the speed limit for crude-by-rail is 50 mph, and that’s voluntary. DOT would make a speed limit mandatory, but would only lower it to 40 mph, and even that may only apply in “high threat urban areas” with more than 100,000 people. “The question of speed limits is crucial,” says Swift. “You need to dramatically reduce the speed at which these trains are moving.” Swift notes that CPC-1232s may puncture when going above 18 mph, but environmental groups stop short of explicitly calling for that speed limit. NRDC says, “Crude oil unit trains must adhere to speed limits that significantly reduce the possibility of an explosion in the event of a derailment.” That would presumably fall somewhere between 18 mph and 40 mph. Stricter speed limits is the one major needed reform that the Senate bill doesn’t address.

Cantwell’s bill also doesn’t compensate communities when accidents happen (the DOT proposal doesn’t either). But the bill’s sponsors intend to introduce future legislation to establish an oil spill liability trust fund paid for by fees from the companies moving crude oil. “Taxpayers should not be on the hook to bail out communities after a disaster caused by private companies,” said Cantwell.

It’s hard to imagine this bill passing both houses of an intensely pro-business, pro–fossil fuel Republican Congress. But Senate Democrats hope that by raising the issue they can build public awareness and support for stronger rules.

The bill could put pressure on the Obama administration to adopt the strongest possible version of its proposal. During the public comment period on DOT’s draft rules, the oil and rail industries argued for the weakest rules under consideration. Now the plans are being reviewed by the White House Office of Management and Budget, which tends to scale rules back in order to reduce their cost to business. Representatives from the oil and rail industries have been meeting with OMB to lobby for weaker rules.

Late last month, Chuck Schumer (N.Y.), who will take over as Senate Democratic leader after Harry Reid (Nev.) retires next year, announced that he and six colleagues — including Baldwin and Democratic Whip Dick Durbin (Ill.) — had sent a letter to OMB Director Shaun Donovan asking him to ensure “the rule is strong and comprehensive and that it is finalized as quickly as possible.” If nothing else, Schumer’s push and Cantwell’s bill will set up a countervailing force to the industry voices that the Obama administration is listening to.

The administration should protect public safety without being pushed by fellow Democrats — in this case, it has the power to do so without congressional approval. There is definitely a clear alternative to the false choice between pipelines and dangerous oil trains.

Crude oil trains are unsafe, period. Stopping them will protect our communities and climate

Repost from Oil Change International
[Editor:  An important article by Lorne Stockman, Research Director
at Oil Change International in Washington, D.C.  Quote: “For the sake of a mere 4% of total petroleum passing through the United States, we say stop the trains now, protect North America’s communities and build an energy system that protects the climate and our citizens from a reckless oil industry.”  – RS]

Crude oil trains are unsafe, period. Stopping them will protect our communities and climate

By Lorne Stockman, March 26, 2015

rail-blog-featured v1The five major oil train derailments and explosions that occurred less than a month apart in the U.S. and Canada recently has refocused attention on the reckless practice of moving millions of gallons of crude oil at a time on a train through the continent’s communities.

The only sensible and safe position on crude-by-rail is clear. We need an immediate moratorium on crude-by-rail shipments in North America. This needs to stop now.

Based on the recent developments and disasters, we now know that nothing short of a moratorium on moving crude by rail in North America is required, until the safety of our communities and climate can be fully guaranteed.

The evidence that the practice is unsafe is undeniable. It’s hard to imagine a more terrifying proposition than one of these trains derailing and exploding in your community.  It is not a disaster waiting to happen, it has already happened over and over again.  That the regulator has still not acted is inexcusable.

Before we go into the details of what it would take to make it safe and why that will not happen without essentially banning the practice, let’s quickly examine what is at stake in terms of U.S. crude oil supply. This is important because it seems that the main reason the Obama Administration has failed to act is because it somehow considers the supply of crude oil enabled by crude-by-rail to be too important to effectively regulate.

This is unacceptable in and of itself, but when you see what’s really at stake regarding our community safety and climate crisis, the assumption appears to be beyond comprehension.

According to our estimates based on Association of American Railroads (AAR) data, about 850,000 barrels per day (bpd) of U.S. crude oil was loaded onto trains in the last quarter of 2014.  In addition, the Canadian National Energy Board reported that around 175,000 bpd of Canadian crude oil was exported by rail to the U.S. in the same period. For simplicity’s sake let’s call it one million bpd.

Meanwhile, the petroleum products consumed in the U.S. in the last quarter of 2014 averaged just less than 19.5 million bpd.  But 24 million bpd passed through the system as the U.S. exported an average of around 4.5 million bpd, including both crude oil and refined products.

In fact, while some pretty wild claims have been made about the current oil boom leading to “energy independence”, the U.S. still imported over 9 million bpd of crude oil and products in the same period.

So given the enormous amount of total petroleum passing through the U.S. system, what would be the impact of banning crude-by-rail immediately until we can work out whether it’s worth risking another disaster? The answer is not very much.

Crude-by-rail accounts for 4.1% of the total petroleum moving through the system (consumption plus exports) or 5.1% of total U.S. petroleum consumption.

What about U.S. oil production? That stood at 9.1 million bpd in Q4-14. The 850,000 bpd that went by rail is just 9.3% of that.

So over 90% of U.S. production traveled by means other than rail and there is in fact spare pipeline capacity in North Dakota and elsewhere. (See here for North Dakota government list of pipelines, refineries and rail facilities)

CBR---Total-Petroleum-Q4-14-Chart
Source: Oil Change International, U.S. Energy Information Administration, Association of American Railroads, Canada National Energy Board. … NOTE: Difference between Production plus Imports vs. Consumption is Refinery Gains and Natural Gas Liquids entering the refinery system.

Any way you cut it, crude-by-rail carries a very small percentage of the oil in our country, yet continues to pose an outsized risk to communities around the country. The build out of terminal capacity suggests that the practice could grow especially if the U.S. crude oil export ban is lifted. This would trigger a rush to move crude to the east and west coasts for export, threatening the communities along the way with much more frequent crude train traffic.

OCI_Box-CrudeTrains-Unsafe
CLICK TO ENLARGE

Are we really unable to ensure public safety because we’re worried that we may impact the transportation of 9% of U.S. oil production or 5% of our oil consumption?  Is government’s role really to weigh the probability of a major death toll against a fraction of energy supply or is it to protect the public? Aren’t our communities and our climate worth more than 1/20th of U.S. oil consumption?

Without crude-by-rail, the industry will have to produce only slightly less than it currently does, which is much more than it produced only a few years ago.  Is that really worth bomb trains endangering 25 million American every year?

The current effort to make crude-by-rail safer through increased regulations is in fact sadly misguided and inadequate. That crude-by-rail is inherently unsafe is painfully obvious.

That it cannot be addressed through looking at any single variable, such as tank car standards or the volatility of a particular crude oil grade, was made clear by a Department of Energy report released earlier this week.

That report aimed to look at whether Bakken crude oil is more volatile than other crude oil. It concluded that there was insufficient information about the crude oil in the Bakken to assess that at this stage. But in the press release the DOE made an important statement regarding the focus on any one particular cause of the terrifying crude-by-rail explosions that have so far occurred.

“The report confirms that while crude composition matters, no single chemical or physical variable — be it flash point, boiling point, ignition temperature, vapor pressure or the circumstances of an accident — has been proven to act as the sole variable to define the probability or severity of a combustion event. All variables matter.”

This goes to the heart of why crude-by-rail cannot be made safe.

It’s not Bakken crude, it’s all crude oil. It’s not the vapor pressure or boiling point of the crude; it’s the incredible weight of a 120-car train carrying 3.5 million gallons of crude oil and the pressure that exerts on rails making derailments more likely. It is the enormous kinetic energy that such a train exerts on tank cars during a derailment. It is the speed the trains travel and the inability of any tank car, including the more robust designs proposed in the draft rulemaking, to withstand the impact of a unit train full of oil derailing at anything near the slowest speeds that would maintain a viable rail freight system. (The tank car design proposed in the draft PHMSA rule has been shown to puncture at speeds of between 12 and 18 mph, while speed limits for crude oil trains are currently set at 40 mph. See pages 119-120 here.)

So there is a combination of things that could be done to prevent derailments and/or the occurrence of explosions and fire in a derailment; e.g. stronger tank cars, shorter trains, slower speeds, less gaseous crude among other things. But the rail and oil industries are fighting the tightest standards for any of these variables and so far it seems the Administration has not shown itself capable of fighting back.

Nearly two years has passed since 47 people were killed in Lac-Mégantic, Quebec by a crude oil train carrying Bakken oil. Since then at least ten fiery derailments have occurred among countless other less dramatic spills and incidents. The regulator has so far failed to propose an adequate suite of measures that would fully protect the public.

That the rail and oil industries are fighting any requirements that will increase their costs is standard practice; it will cost them money and the sociopathic nature of corporate behavior puts profits before the interests of society. But while the oil industry opposes stabilizing gassy crude oil, stronger tank cars and fast phase-outs for the existing stock of dangerous cars, the rail industry opposes better braking systems and stricter speed limits.

Together they make a strong team of opposition to the range of safety measures that might be effective. A safety regulator under fire from the combined power of two of the most notorious and well-resourced lobby machines in the history of the United States is unlikely to come up with a solution that prioritizes the public’s interest.

Beyond the urgent issue of the safety of hundreds of North American communities that live within a mile of the train tracks, some 25 million people in the U.S. alone, we urgently need to transition to a clean energy economy as fast as possible. The All of the Above energy policy that has brought us reckless crude-by-rail has been focused on pulling oil out of the ground as quickly as possible no matter the consequences, rather than transitioning us away from oil. That needs to change beginning with ending this dangerous practice.

For the sake of a mere 4% of total petroleum passing through the United States, we say stop the trains now, protect North America’s communities and build an energy system that protects the climate and our citizens from a reckless oil industry.

Go here for more on crude-by-rail